When the world’s largest asset manager makes a move, the financial world listens. BlackRock isn’t just dipping its toes into blockchain anymore—it’s about to cannonball into tokenization.

📌 What’s Happening

BlackRock plans to tokenize ETFs and other real-world asset (RWA) funds, expanding beyond its 2024 BUIDL product (a tokenized U.S. Treasuries fund built with Securitize).

Pending regulatory approval, this would mark the first large-scale tokenization of mainstream funds by a traditional financial giant.

Targeted fund categories include:

Equity ETFs

Fixed Income / Bond funds

Money Market funds

Real Estate funds

Private Credit funds

👉 These categories represent a staggering $12.5 trillion in assets (Q2 2025)—and BlackRock is positioning to pull a significant portion of that on-chain.

🗣️ The Sentiment

Bloomberg’s James Seyffart: “Downplaying tokenization today will look like downplaying digital assets 10 years ago.”

Graeme Moore (Project 11): “BlackRock is tokenizing their ETFs and you’re bearish? Everything will be tokenized.”

⚡ Why It Matters – Key Points Analysis

24/7 Markets, Instant Settlement

Tokenized ETFs mean faster transfers, round-the-clock settlement, and near-frictionless access for investors worldwide.

Composability with DeFi

Tokenized funds could plug directly into DeFi, enabling lending, collateralization, and innovative financial products powered by traditional assets.

Legitimacy Boost for Crypto

With BlackRock moving trillions of dollars on-chain, crypto shifts from “speculative frontier” to core infrastructure of global finance.

Winners in the Ecosystem

Stablecoins: Demand will surge as RWAs require stable on-chain liquidity.

DeFi protocols: Collateral pools and yield strategies will expand dramatically.

Ethereum: Since BUIDL lives on Ethereum, there’s a strong chance these ETFs follow suit, making ETH the biggest beneficiary.

The Domino Effect

If regulators approve, BlackRock sets the precedent—and every other major manager will be forced to follow. The race to tokenize is on.

🚨 The Takeaway

This isn’t hype—it’s structural change. Tokenization isn’t about pumping random altcoins. It’s about reshaping how trillions in capital are managed, transferred, and integrated into crypto infrastructure.

If approved, this move could be remembered as the moment Wall Street fully embraced blockchain rails.

Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.